Brian Armstrong, the CEO of Coinbase, has spoken out against the Securities and Exchange Commission’s (SEC) decision to file a lawsuit against the exchange. The SEC’s charges were filed on allegations that Coinbase was listing securities without registering with the regulatory body. This has led to additional actions from Alabama and New Jersey, which has intensified the scrutiny over the digital asset platform.
Armstrong Responds to SEC’s Charges
Armstrong responded to the SEC’s charges on Twitter, rejecting the idea that the company was operating without oversight. He pointed out that the SEC had reviewed and approved Coinbase to become a publicly-traded company in 2021. The Coinbase CEO stated that the SEC’s regulatory approach is harming America, instead of publishing a clear rule book.
Armstrong highlighted Coinbase’s attempts to register with the SEC, but the regulatory body’s lack of clear understanding with the Commodity Futures Trading Commission (CFTC) regarding the classification of what constitutes a crypto security or commodity in the first place. The confusion arises due to technical definitions of securities and crypto assets, and whether a financial tool invented in the 21st Century is subject to early 20th Century definitions or vocabulary.
Coinbase Does Not List Securities
Armstrong publicly stated that Coinbase does not list securities. He implied that the exchange relied on internal measures to make such judgments in the absence of clear language from the SEC. “We reject the vast majority of assets we review,” he wrote.
The controversy surrounding Coinbase arises amid increasing confrontations in the US between regulators and companies (or projects or protocols) operating in the industry. These actions against Coinbase follow the SEC’s decision to sue Binance and its CEO Changpeng Zhao on June 5.
The SEC’s lawsuit against Coinbase has led to increased scrutiny over the digital asset platform. Brian Armstrong has responded to these charges and criticized the regulator’s approach. The confusion surrounding the classification of crypto securities and commodities remains a contentious issue, leading to increased confrontations between regulators and companies operating in the industry.